Foreign Ownership, Agency Fees, Debt, and Company Value of Manufacturing Companies on the Indonesia Stock Exchange

Alvin Budiman; Putu Anom Mahadwartha

doi:10.23971/jaq.v8i1.2964

Foreign Ownership, Agency Fees, Debt, and Company Value of Manufacturing Companies on the Indonesia Stock Exchange

Alvin Budiman, Putu Anom Mahadwartha

Abstract

This research aims to test the effect of foreign ownership, agency cost, and debt on firm value. The Independent variable used in this research is foreign ownership, measured by the percentage of foreign ownership; agency cost, measured by asset utilization; and debt, measured by debt ratio. The dependent variable of this research is a firm value measured by Tobin’s Q. Sample of this research is a manufacturing company listed in BEI from 2015 until 2019, which is 160 companies. The sample that this research used is 109 manufacturing companies consisting of the consumer goods sector, basic industry and chemicals sector, and various industrial sectors. The method used is multiple regression analysis with Eviews 10 as the application. The results show that foreign ownership and debt positively affect firm value, while agency costs negatively affect firm value.

Keywords

Foreign Ownership, Agency Costs, Debt, Firm Value

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DOI: https://doi.org/10.23971/jaq.v8i1.2964

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